Michigan offers carrots, sticks for retirement

Eligible state employees who don't retire by Sept. 30 will lose vision and dental benefits
|hrreporter.com|Last Updated: 11/09/2010

In an effort to save US$300 million, Michigan is offering 45,000 state employees incentives to retire by Sept. 30. Those who are eligible to retire but don't do so by the deadline will see a reduction in their retirement benefits.

The state is facing a US$1.6 billion deficit in the 2011 budget, said Gov. Jennifer Granholm.In the past seven state employees have made US$650 million in concessions but with state revenue at historic lows, Michigan has to reduce the size and cost of the public workforce, said Granholm.

About 7,000 state workers and 39,000 school personnel, who agree by May 15 to retire by Sept. 30, will receive a one-time boost to their pension benefit and will be able to keep their retiree dental and vision benefits.